IBAC’s expanded powers to 'follow the money' passed Parliament and are now in effect 

What you need to know

• The Victorian Independent Broad-based Anti-corruption Commission Amendment Act 2026 (Amendment Act) received Royal Assent on 1 October and has now commenced operation, expanding IBAC’s jurisdiction to investigate corruption involving public funds to the private sector.
• We published an article on 15 September summarising the initially proposed reforms. The Amendment Act expands on the initially proposed reforms, and these further changes are summarised in this article. We also provide a snapshot of IBAC's existing powers which now reach into the private sector.
• The further reforms include: expanding IBAC's powers to investigate historical matters, complaints and notifications; changes to when public examinations may be held; revisions to the process for responding to adverse material in IBAC special reports; and other changes to the administration of IBAC.

What you need to do

• Review your organisation’s compliance frameworks to ensure they manage corruption and integrity risks across the entire contractual chain, not just within your own organisation. This includes reporting processes and procedures.
• Businesses that provide services or perform functions for or on behalf of the State, a public body or a public officer should have systems and processes in place that apply where your organisation or its employees become the subject of an investigation or inquiry.
• Review whether contracts relating to those services and functions contain adequate protections against actual or suspected 'corrupt conduct', such as audit and information rights, obligations to report corrupt conduct, and rights to suspend or terminate.
• Consider whether it is necessary to revisit historical matters, projects, transactions, incidents or investigations where public funds have been involved in light of the expanded scope and retrospective operation of IBAC's powers.

Victoria's Independent Broad-based Anti-corruption Commission Amendment Act 2026 has passed and is now in force

In a recent article, we summarised the initially proposed reforms under the Independent Broad-based Anti-corruption Commission Amendment Bill 2026 (Bill) to the Independent Broad-based Anti-corruption Commission Act 2011 (Vic) (IBAC Act).

The Independent Broad-based Anti-corruption Commission Amendment Act 2026 (Amendment Act) received Royal Assent on 1 October and has now commenced. The Amendment Act includes some further changes that were not covered under the Bill, which include:

• expanding IBAC's powers to investigate historical matters, complaints and notifications;
• changes to when public examinations may be held; and
• revisions to the process for responding to adverse material in IBAC special reports.

There are also other changes to the administration of IBAC.

Importantly for the private sector, the Amendment Act has expanded the existing definitions of public body and public officer to include associated entities. An associated entity includes a person or body that provides services or performs functions for or on behalf of the State, a public body or a public officer. The definition is broad and can apply across various arrangements, including contracts, subcontracts, agency arrangements and joint venture agreements. It can capture private companies and individuals involved in delivering public functions or using public funds. For associated entities, receiving, using or spending public funds can now be enough to make a function public.

1. Historical investigations, complaints and notifications

The transitional provisions in the Bill were also expanded and now allow IBAC to:

• Investigate conduct which occurred before commencement of the Amendment Act, provided the conduct was conduct of, or in relation to, a public officer or public body (whether or not still in existence) who or which would have been a public officer or public body under the Amendment Act and would have constituted corrupt conduct under the Amendment Act had it been in force at the relevant time.
• Reopen previous complaints that IBAC had dismissed, or referred to a person or body (other than the Ombudsman) or referred to the Ombudsman where the Ombudsman had dismissed or declined to investigate it.

The Amendment Act does not require IBAC to reopen a complaint or notification it had dismissed or referred, or an investigation that it had completed.

2. When can public examinations be held?

The former IBAC Act required IBAC to consider on reasonable grounds that there are exceptional circumstances before it is able to hold an examination in public. This requirement has been repealed.

Under the Amendment Act, a decision to hold a public examination must be made by the Commissioner and at least one Deputy Commissioner (or by the Commissioner alone if there are no Deputy Commissioners). Consequential amendments have also been made to the former IBAC Act to ensure that IBAC's general power to delegate does not extend to the power to decide to hold a public examination.

3. Responding to adverse material in IBAC special reports

The Amendment Act introduces a structured timeframe for responding to adverse material in IBAC special reports. Where IBAC intends to include adverse findings about a public body (which includes associated entities) in a special report, it must give the relevant principal officer (which includes the head of a public body or public officer however named) an opportunity to respond within 20 business days. Similarly, if IBAC intends to include a comment or opinion which is adverse to any person, it must give that person an opportunity to respond within the same 20 business day period.

Within 14 days of IBAC informing that person or relevant principal officer, the relevant principal officer or person may make a written request to IBAC for an extension of time to respond to the adverse material or findings. IBAC then has the discretion to grant an extension to the response period.

If a response is received by IBAC within the 20 business day period (or the extended period if granted by IBAC), IBAC is required to fairly set out each element of that response in its report.

IBAC's existing powers now reach into private sector

The Amendment Act significantly expands IBAC’s investigative reach into the private sector.

Powers previously focused on the narrower definition of public bodies or officers now extend to associated entities that deliver government services or receive public funds (such as contractors and subcontractors).

Businesses that provides services or perform functions for or on behalf of the State, a public body or a public officer should become familiar with IBAC's powers and how they may affect them.

This includes:

• Investigation: IBAC can summons any person to produce documents, even at the preliminary inquiry stage. IBAC's expanded powers do not displace legal professional privilege, so businesses should identify and preserve potentially privileged material early and have protocols in place to respond promptly to IBAC requests.
• Examinations: witnesses (such as employees, officers, and directors) can be compelled to give evidence on oath, sometimes in public.
• Self-incrimination: a person cannot refuse to answer a question, provide information or produce a document or other thing required by IBAC because it may incriminate that person or expose them to a penalty. However, any information provided which may self-incriminate a person is generally protected by 'use immunity', meaning it cannot be used as evidence against that person in a court.
• Penalties: a person who fails to attend an IBAC examination or fails to produce required documents faces a maximum criminal penalty of 240 penalty units (currently $209.10 per unit), 2 years of imprisonment, or both. IBAC may take further steps, including applying to a court for an arrest warrant if a person fails to attend a witness summons.
• Officers: criminal liability can be personally imposed on an officer (which includes "someone who takes part in the management of the body corporate") where a body corporate commits certain specified offences and the officer authorised or permitted the conduct, or was knowingly concerned in its commission.
• Reporting obligations: the heads of associated entities who now fall within IBAC's jurisdiction as public bodies or public officers should understand their obligations and ensure appropriate oversight of the company's compliance with IBAC reporting requirements. This includes a mandatory obligation to notify IBAC of suspected corrupt conduct which takes effect in April 2027 (based on the transitional provisions) for new entities which now fall within the definition of a public body or public officer.

IBAC can take a range of adverse measures at the conclusion of an investigation including:

• Prosecution: bringing criminal proceedings including for offences arising from an investigation, or referring matters to a prosecutorial body such as the Office of Public Prosecutions or to the Judicial Commission.
• Referrals: referring matters to other bodies, including Victoria Police, the Ombudsman or the relevant principal officer, for investigation, disciplinary or other action. It can also share information with law enforcement and integrity bodies.
• Recommendations: recommending action to the relevant principal officer, the responsible Minister or the Premier. IBAC can require the recipient to report on whether the recommendation has been acted on, which the recipient must comply with. IBAC may make a recommendation public if appropriate action is not taken.
• Public reports: tabling special reports in Parliament. A report cannot state that a named person is guilty of an offence or should be prosecuted, however, it can contain adverse comments or opinions.

Even where no charges are laid, a public report or a recommendation can cause significant reputational and commercial damage - including for future government contracts.

Key takeaways

The Amendment Act is now in force. The expansion of IBAC's powers reinforces the need for businesses to have robust corruption risk management and investigation processes in place.

IBAC has announced that it is now planning implementation of the reforms, and working with government on the additional funding needed to do so effectively.

We refer you to our earlier article which provides high-level guidance on what businesses that receive, manage or spend public money should do in light of these reforms.

Want to know more?

• IBAC's new powers: what they mean for the private sector (15 September 2026)
• Quickguide — Anti-Bribery Laws in Australia (9 September 2024)

Authors: James Clarke, Partner; Dario Aloe, Senior Associate and Sancia Bingham, Lawyer